Sonali Bank gets permission to sign deal with PayPal
The service will help people and businesses transfer funds, including transfer of remittances, electronically, without any hassle
Publish | 20 Mar 2017, 19:40
State owned Sonali Bank has received permission from Bangladesh Bank to start its operations with PayPal in Bangladesh.
The central bank’s Foreign Exchange Policy Department issued the order to make global online payment system PayPal available here on Monday.
“We just received permission. Now we will go forward with necessary procedures including signing of formal agreement with the PayPal, so that the service comes into operation soon,” an officer of the Foreign Remittance Management Division of Sonali Bank told the Dhaka Tribune.
“Sonali Bank will now sign agreement with PayPal soon after opening a legal channel for transaction,” the bank official added.
However, when later contacted, another highly placed source at Sonali Bank said that all required processes, including cross-checking of documents and legality, and finalisation of terms and conditions, had already been completed.
“We just have to wait a few days for the service to be launched, that is all,” the source added.
The service will help people and businesses transfer funds, including transfer of remittances, electronically, without any hassle.
PayPal allows individuals and businesses to transfer funds electronically. As it is an online service, an individual first needs to open a PayPal account with a valid email address. The aspiring PayPal user would also need a valid credit card or a bank account linked with PayPal to avail its services.
Bangladesh has been facing difficulty in receiving remittance earned through outsourcing but the new contract with PayPal will make the inflow of remittance easier and faster, sources said.
PayPal makes money by charging transaction fees mainly from business accounts, charging to a payment’s recipient. Although most transactions are free, merchants pay a fee for each transaction. However, it does not charge any fees to send money.
On July 15, 2015, Zunaid Ahmed Palak on a Facebook status said: “We had a very effective meeting with the vice-president of PayPal today in San Jose, California. We explained to them in detail about Bangladesh Government’s policies and regulatory reforms and business opportunities for PayPal.
“They have agreed to launch Xoom’s operations in Bangladesh within this quarter. They [PayPal] will also internally discuss on how they can prioritise and launch PayPal in Bangladesh and let us know if they need any further support from our government. We will continue our efforts to bring PayPal to Bangladesh sooner rather than later.”